Chase Freedom Card Offers $100 Cash Back Bonus with No Annual Fee

It's widely known that people with the best credit scores get the best deals on financing, and this Chase card is no exception. Although it doesn't offer the lowest interest rate out there (11.99% - 22.99%, depending on your credit history), it does offer cash back rewards with no annual fee: a rather uncommon feature in today's market. You will earn one point for every dollar spent and the cash equivalent of a point is $0.01. That doesn't seem like a lot money back, but if you put a large share of your monthly purchases on the card and pay off the balance each month, every $500 you spend is an extra five dollars in your pocket. The card also offers 0% interest on balance transfers for the first 12 months and 0% interest on purchases for the first six months.

Additionally, if you make $500 in qualifying purchases during the first three months of the account opening, Chase will give you a bonus of 10,000 reward points. That works out to $100 bonus for spending $500 on the card in the first three months. In addition to the regular 1% cash back on all purchases, you can earn an additional 4% back on certain bonus categories. Chase indicates the bonus categories include things like gas, groceries, and airline tickets, but the bonus categories are subject to a quarterly enrollment and maximum limits.

This sounds like a really great deal. So what's the catch? Well, to start with, not everybody will qualify for this card. The regular interest rate could be lower, but if you pay off your balance each month the interest rate isn't an issue. However, if you exceed your credit limit or make a late payment, your interest rate will jump to 29.99%. This penalty APR not only applies if you make a late payment on this particular Chase card, but if you make a late payment on any Chase account or with any bank with which Chase is related. Additionally, although you are not charged any interest on balance transfers you make during the first 12 months, you will incur a 3% charge (or $5, whichever is greater) on all balance transfers. A balance transfer fee is pretty common for the industry, however.

The bottom line: if you have a great credit rating (generally, 700 or above), this card definitely makes it worth your while to take a second look at it.